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Document Preview Agreement and Plan of Merger and Asset Contribution |
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Title: |
Agreement and Plan of Merger and Asset Contribution |
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Entities: |
Bank of Nova Scotia; Corporation Trust Co.; E.I. Du Pont De Nemours & Co.; Millennium Chemicals Inc.; Monsanto Co.; Union Pacific Corp.; Baker Botts; Occidental Petrochem Partner 1, Inc., Occidental Petrochem Partner 2, Inc., Oxy Petrochemicals Inc., Pdg Chemical Inc.; Equistar Funding Corp. |
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Date: |
1999 |
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Size: |
Preview shows 18KB of 202KB total |
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Price: |
$91 |
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ID: |
#109032 |
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AGREEMENT AND PLAN OF MERGER
AND
ASSET CONTRIBUTION
AMONG
OCCIDENTAL PETROCHEM PARTNER 1, INC.,
OCCIDENTAL PETROCHEM PARTNER 2, INC.,
OXY PETROCHEMICALS INC.,
PDG CHEMICAL INC.
AND
EQUISTAR CHEMICALS, LP
DATED: MAY 15, 1998
{PAGE}
TABLE OF CONTENTS
-----------------
{TABLE}
{CAPTION}
PAGE
----
{S} {C}
SECTION 1 THE MERGER............................................................................................ 2
1.1 The Merger............................................................................................ 2
1.2 Effects of the Merger................................................................................. 2
1.3 Closing; Effective Time............................................................................... 2
1.4 Certificate of Limited Partnership; Partnership Agreement; Partnership Governance Committee.......... 3
1.5 Conversion of Certificates............................................................................ 3
1.6 Exchange of Certificates.............................................................................. 3
1.7 Transfer of Excluded Assets........................................................................... 4
1.8 Assumption of Excluded Liabilities.................................................................... 4
1.9 Transfer of Oxy Petrochemicals Assets................................................................. 4
SECTION 2 CONTRIBUTION OF ASSETS; ASSUMPTION OF CERTAIN LIABILITIES............................................. 5
2.1 Transfer of Assets.................................................................................... 5
2.2 Excluded Assets....................................................................................... 6
2.3 Instruments of Conveyance and Assignment.............................................................. 7
2.4 Further Assurances.................................................................................... 8
2.5 Assumption of Liabilities............................................................................. 9
2.6 Excluded Liabilities.................................................................................. 10
2.7 Master Intellectual Property Agreement................................................................ 11
2.8 Employee Matters...................................................................................... 11
2.9 Joint Contracts....................................................................................... 17
SECTION 3 REPRESENTATIONS AND WARRANTIES OF THE CONTRIBUTORS.................................................... 18
3.1 Due Organization; Good Standing and Power............................................................. 18
3.2 Authorization and Validity of Agreements.............................................................. 18
3.3 No Consents Required; No Conflict with Instruments to which a Contributor is a Party.................. 18
3.4 Employee Benefits..................................................................................... 19
3.5 Title to Assets; Absence of Liens and Encumbrances; Leases............................................ 20
3.6 Title Matters; Defects in Improvements................................................................ 21
3.7 Working Capital....................................................................................... 21
3.8 Technology and Similar Rights......................................................................... 21
3.9 Government Licenses, Permits and Related Approvals.................................................... 22
3.10 All Necessary Assets.................................................................................. 22
3.11 Conduct of Business in Compliance with Regulatory and Contractual Requirements........................ 22
3.12 Legal Proceedings..................................................................................... 22
3.13 [Reserved]............................................................................................ 22
{/TABLE}
-i-
{PAGE}
{TABLE}
{S} {C}
3.14 Tax Matters.............................................................................. 22
3.15 [Reserved]............................................................................... 22
3.16 HSE Matters.............................................................................. 22
3.17 Investigation to Acquire Knowledge....................................................... 23
SECTION 3A ADDITIONAL REPRESENTATIONS AND WARRANTIES OF OXY CH SUB.................................. 24
3A.1 Capitalization........................................................................... 24
3A.2 Ownership of Common Stock................................................................ 24
3A.3 No Undisclosed Liabilities............................................................... 24
SECTION 4 REPRESENTATIONS AND WARRANTIES OF THE PARTNERSHIP........................................ 24
4.1 Due Organization; Good Standing and Power................................................ 24
4.2 Authorization and Validity of Agreement.................................................. 25
4.3 No Consents Required; No Conflict with Instruments to which the Partnership is a Party... 25
SECTION 5 COVENANTS SUBSEQUENT TO CLOSING DATE..................................................... 25
5.1 Access to Information.................................................................... 25
5.2 Mail or Other Communications............................................................. 26
5.3 Use of Trade Name........................................................................ 26
5.4 Closing Date Balance Sheet............................................................... 26
5.5 [Reserved]............................................................................... 26
5.6 Collection of Accounts Receivable........................................................ 26
5.7 Reimbursement for Prepaid Expenses....................................................... 27
SECTION 6 SURVIVAL AND INDEMNIFICATION............................................................. 27
6.1 Survival Limitations..................................................................... 27
6.2 Indemnification.......................................................................... 27
6.3 Procedures............................................................................... 30
6.4 Subrogation.............................................................................. 32
6.5 Claims for HSE Work...................................................................... 32
6.6 EXTENT OF INDEMNIFICATION................................................................ 33
SECTION 7 MISCELLANEOUS............................................................................ 33
7.1 Construction............................................................................. 33
7.2 Payment of Certain Expenses and Taxes.................................................... 33
7.3 Notices.................................................................................. 34
7.4 [Reserved]............................................................................... 35
7.5 Binding Effect; Benefit.................................................................. 35
7.6 Occasional and Bulk Sales................................................................ 35
7.7 Assignability............................................................................ 35
7.8 Amendment; Waiver........................................................................ 36
7.9 Dispute Resolution....................................................................... 36
{/TABLE}
-ii-
{PAGE}
{TABLE}
{S} {C}
7.10 Severability...................................................... 36
7.11 Counterparts...................................................... 36
7.12 APPLICABLE LAW.................................................... 36
7.13 JURISDICTION; CONSENT TO SERVICE OF PROCESS; WAIVER............... 36
7.14 WAIVER OF JURY TRIAL.............................................. 37
SECTION 8 DEFINITIONS....................................................... 37
{/TABLE}
{PAGE}
LIST OF SCHEDULES AND EXHIBITS TO AGREEMENT
-------------------------------------------
Schedules
---------
Schedule A - Contributed Business
Schedule 2.1(a) - Fee Interests
Schedule 2.1(b) - Leases
Schedule 2.1(d) - Equipment
Schedule 2.1(k) - Contributed Subsidiaries
Schedule 2.2(c) - Excluded Tradenames and Logos
Schedule 2.2(h) - Certain Excluded Assets
Schedule 2.5(a)(vii) - Assumed Indebtedness
Schedule 2.5(a)(x) - Assumed Long-Term Liabilities
Schedule 2.8(b) - Basic Severance
Schedule 3 - Disclosure Schedule
Appendices
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Appendix A - Dispute Resolution Procedures
Exhibits
--------
Exhibit A - Form of Assignment of Lease and Act of Exchange
Exhibit B - Form of Assignment of Leases
Exhibit C - Form of Bill of Sale and Assignment
Exhibit D - Form of Trademark License
Exhibit E - Form of Patent Assignment
Exhibit F - Form of Partnership Assumption Agreement
Exhibit G - Form of Master Intellectual Property Agreement
Exhibit H - Form of Assignment of Partnership Interests
Exhibit I - Form of Assignment of Excluded Assets of Oxy
Petrochemicals
Exhibit J - Form of Oxy CH Sub Assumption Agreement
Exhibit K - Form of $419,700,000 Promissory Note
iv
{PAGE}
AGREEMENT AND PLAN OF MERGER
----------------------------
AND
---
ASSET CONTRIBUTION
------------------
This AGREEMENT AND PLAN OF MERGER AND ASSET CONTRIBUTION (this
"Agreement"), dated as of May 15, 1998, is entered into among Occidental
Petrochem Partner 1, Inc., a Delaware corporation ("Occidental Chemical Sub"),
Occidental Petrochem Partner 2, Inc., a Delaware corporation ("Oxy CH Sub"),
Oxy Petrochemicals Inc., a Delaware corporation ("Oxy Petrochemicals"), PDG
Chemical Inc., a Delaware corporation ("PDG Chemical"), and Equistar Chemicals,
LP, a Delaware limited partnership (the "Partnership").
The definitions of capitalized terms used in this Agreement, including the
appendices hereto, are set forth in Section 8 hereof.
---------
WHEREAS, Oxy Petrochemicals is a direct wholly owned subsidiary of Oxy CH
Sub, Oxy CH Sub is a direct wholly owned subsidiary of Oxy CH Corporation, a
California corporation ("Oxy CH") and Oxy CH is a wholly owned indirect
subsidiary of Occidental Petroleum Corporation, a Delaware corporation
("Occidental").
WHEREAS, the Partnership, Occidental, Lyondell Petrochemical Company and
Millennium Chemicals, Inc. are parties to that certain Master Transaction
Agreement of even date (the "Master Transaction Agreement").
WHEREAS, Occidental Chemical Sub, PDG Chemical and Oxy CH Sub will be
admitted as partners in the Partnership upon the Closing pursuant to an Amended
and Restated Agreement of Limited Partnership of the Partnership.
WHEREAS, Occidental Chemical Sub wishes to contribute certain assets and a
lease of certain other assets, in each case subject to certain liabilities
associated with the olefins, polyolefins and related petrochemicals businesses
to the Partnership, and the Partnership wishes to accept such assets and lease
and assume such liabilities, all upon the terms and conditions hereinafter set
forth.
WHEREAS, PDG Chemical wishes to contribute all of its right, title and
interest in and to PD Glycol, a Texas limited partnership ("PD Gylcol"), and the
Partnership wishes to accept such right, title and interest, all upon the terms
and conditions hereinafter set forth. Occidental Chemical Sub and PDG Chemical,
collectively or individually as the context may require, are referred to herein
as the "Asset Contributors."
WHEREAS, the respective Boards of Directors of Oxy Petrochemicals and Oxy
CH Sub and the Partnership Governance Committee of the Partnership deem it
advisable and in the best interest of their respective entities that Oxy
Petrochemicals merge with and into the Partnership (the "Merger"), upon the
terms and conditions of this Agreement, and the applicable provisions of the
{PAGE}
laws of the State of Delaware. The Asset Contributors and Oxy Petrochemicals,
collectively or individually as the context may require, are referred to herein
as the "Contributors."
WHEREAS, upon the Closing, the Partnership will consummate certain
transactions and enter into certain agreements as provided for in the Master
Transaction Agreement.
NOW THEREFORE, in consideration of the premises and of the mutual covenants
of the parties hereto, it is hereby agreed as follows:
SECTION 1
THE MERGER
----------
1.1 The Merger. Upon the terms and subject to the conditions of this
----------
Agreement and in accordance with the provisions of the DGCL, at the Effective
Time, Oxy Petrochemicals shall be merged with and into the Partnership, and the
separate corporate existence of Oxy Petrochemicals shall cease and the
Partnership shall continue as the surviving entity (hereinafter sometimes
referred to as the "Surviving Partnership") under the laws of the State of
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